Review of financial reporting, advance notification of decision
On 14 March 2011 The Scottish Salmon Company Ltd ("SSC" or the "Company" and, together with Lighthouse Caledonia ASA, the "Group") received a Notice of Decision from Finanstilsynet regarding the Group's financial statements of 2008 (then Lighthouse Caledonia ASA being the ultimate parent company within the Group). For further information on the supervision by Finanstilsynet, we refer to information provided in the Company's combined offer document and listing prospectus dated 8 June 2010 and Lighthouse Caledonia ASA's annual accounts of 2009 including notes. We also refer to Lighthouse Caledonia ASA's announcement of 23 March 2010 and SSC's announcement of 27 October 2010.
It is the Company's understanding that Finanstilsynet has requested the Company effects the following changes to the Group's 2007 and 2008 financial statements which, along with other, non-material, adjustments, will be disclosed in the notes to the Company's 2010 financial statements. These changes include: (i) the transfer of a GBP 2.5 million loss resulting from a write down of fixed assets from 2007 to 2008. No correction is required within the 2008 balance sheet as a result of this adjustment; and (ii) the adjustment of the biological fair value calculation for 2007 and 2008. As a result of this adjustment, the value of biological assets for 2007 will increase but there is no adjustment required for the value of biological assets at year end 2008. The EBIT effect is a transfer of loss from 2007 to 2008.
The Company notes that there is no change to the opening balance sheet of 2009.
Following the supervision of Finanstilsynet and the Company's own review of its methodology of the biological fair value calculation for 2007 and 2008, the Company has reviewed its fair value assessment at year end 2009. The Company has found that the biological assets are recorded at less than their fair value and therefore will correct these balances in its 2010 annual report. The correction will uplift the profits in 2009.
The methodology used for calculating fair value of biological assets in the interim reporting at Q4 2010 is correct and therefore there will be no significant change to this value in the next published figures.
The Company intends to comply with Finanstilsynet's decision and looks forward to the resumption of its application to the Oslo Stock Exchange for the admission of listing SSC's shares to Oslo Stock Exchange's marketplace (the main list) with simultaneous delisting on Oslo Axess (transfer of listing) as soon as practicable.
Questions should be directed to:
The Scottish Salmon Company Limited, attn.: Robert Wilson
Robert.wilson@scottishsalmon.com
The Scottish Salmon Company is the leading independent producer of Scottish salmon, providing superior salmon to both the local and international markets. The Scottish based and operated company is a fully-integrated seafood company, built around the provenance, taste, freshness, sustainability and health benefits of its salmon.
The Company is engaged in all stages of the value chain from smolt production to harvesting, processing and sales. Operating from 37 sites on the Hebrides and the West Coast of Scotland, the company currently employs over 300 staff. The Scottish Salmon Company currently produces approximately 24,000 tonnes of Scottish salmon annually, accounting for about 20%of Scottish production.